Savannah morning news. [volume] (Savannah) 1868-1887, 1887-01-02
The Surplus Difficulty.

! Representative Scott, OF Pennsylvania,
who is. regarded as one OF the sblest
tna nctsfs An Congress, has a plan FOR
tldiug over the threatened surplus emerg-
ency. 1t IS plan that will invite atten-
llon, ffit does not command approval.
Mr.. Scott bias embodied it in bill, which
heoF ffi4htreduce into the House as soon
asaCOn9ress reassembles.
The bill provides Tor losning the surplus
to the national banks o Boston, New
fark1 ,Pill! adelphia, Baltimore, Charles
ton, Nrw Orleans, Galveston, Louisville,
Cincinnati, ST. Louis, Detroit. chicago,
Milwaukee. st. Paul and San Francisco
upon the following terms: only those
banks shall be emitted to portion of the
surplus which have for five consecutive
years paid a per cent. dividend, and
which have accumulated a reserve OF 20
per cent. No bank shall have deposit Of
the surplus greater than 60 per cent. OF
the par value Of its stock, and shall pay
the government 2 per cent. interest on
whatever amount it NAV receive. The
deposits snail be subject 10 the sight
drafts OF the United States Treasurer and
shall be first lien upon the assets OF The
banks. The act is to remain IN force
until July l, 1889, aud is not to go into
effect until all the 3 per cents. are called
IN,
Mr.. Scott thinks that his scheme VIII
not meet with favor from Congress al
| first, but that, as it IL studied, it will gain
| friends. He says, and no one will ques-
| ton the statement, that the people can
stand taxation which produces surplus
| Of $l00, 0O0, 600 a year much better than
they can the withdrawal OF 500, 100000 a
year from circulation.
There is no doubt that the monetary
question overshadOws all others at the
present time. BY Oct. l Of the present
year all the per cents. will have been
paid, and the SUI plus will then begin TO
accumulate very rapidly. Tuere ia no
present way in which it can be gotten out
ol the tt easury and into the hands of the
people, where 1t belongs. 1t will be adj
mitted without question that the money
which the government does not need be-
longs to the people. TO take hundreds Of
millions from them and store it in the
Treasury is certain to produce financial
troubles of very grave character.
1t may be urged that tne security which
the bill requires is not sufficient. MIR
Scott thinks it Will be ample. 1t will be
equal to 6J per cent. of the amount de-
posted with the banks, ana he thinks the
liability Of stockholders under the
natioaal banking act VIII be sufficient
security for tue other So per cent.
The opinion appears to be growing that
II something is not done to get rid OF the
surplus before Congress adiourns an
extra session will be necessary. The
disposition appears to be to put of dealing
with the surplus question until the trouble
comes, but that is not wise to do so.
The proper thing to do is to cut down
the revenues by reducing tariff taxation,
and it is pitiiul to see now impOtent Con-
gress is to adopt that course. Every Con.
gresham knows that it is wrong for the
government to collect from the people
more than it needs, ana yet the influence
of few great monopolies is sufficient to
compel the government to do that wrong.